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Hi, Kindly help me with the below issues,
1. If the total CTC is 17k Per month and Net pay is 13600K in Karnataka, is it ok according to minimum wages act. And minimum wages means Gross salary or Net?
2. We are a software startup in bangalore and shop and establishment is registered and planning to start a branch office in Erode. Is it necessary to register separately shop and establishment act for erode or can we show that employees(erode) on the bangalore payroll.
3. And if we consider the erode employees on bangalore payroll, How the ESI has to be done? Is ESI only applicable to the particular state?
Need your inputs please.
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Hi Savita,
1. Rs.17k gross salary seems to be Ok, but there are difficulties if it is CTC which has to be examined with break up. Pl.post the break up for CTC components & amounts. Minimum wages denotes only Gross salary, net take home salary has no relevance for MW.
2.Your start up Co. has to obtain registration under TN S & E act separately though pay roll could be all in one processed at Bangalore. Also you should have separate regn.No. under GST & Prof.Tax purposes.
3.ESI accounting could be one and the same under which employees in Erode can avail ESI facilities available in & nearer to Erode. As you might know ESI is applicable all over India, a common for all states. There is no specific ESI act applicable exclusively for a state alone.
Hello Sir,
Thank you for the inputs. Apologies for the late reply. Below is the salary breakup.
Components Salary (2019-2020)
Fixed Pay Per Month INR Per Annum INR
Basic Pay 6800 81600
HRA 2720 32640
Special Allowance 5950 71400

PF (Employer's Contribution) 1530 18360
Total Fixed Pay 15470 185640
Statutory Deductions
PF (Employee's Contribution) 1530 18360
Total Net Pay 13940 167280
Total Cost to Company (CTC) 17000 204000
And 4%ESI should be deducted further.
Kindly let me know whether I can go ahead with the above salary breakup.
Thank You
Hello Savita,
Pl.see the attached sheet for working based on your above inputs.

Attached Files
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File Type: xls GROSS SALARY&CTC FOR 15500.xls (25.0 KB, 47 views)

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